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Regional manager sets up bank loan without company permission

Gigabyte recently made shocking headlines when it announced that it would be leaving the partnership it had created with long time rival ASUS. Originally, the plan was to create a joint venture, where the two companies could cooperate on developing and manufacturing new products. Called Gigabyte United, the joint venture would have allowed both companies to share and take advantage of the other's resources.

This week, Gigabyte announced that it had lost roughly $5 million USD due to an internal scandal committed by one of its regional managers. Chang Chaosong, factory manager at Ningbo Gigabyte Technology in China, allegedly listed Gigabyte as a guarantor for a bank loan towards a third party loan. By being a guarantor, Gigabyte would be liable to repay the loan if the third party did not repay it.

Unfortunately for Gigabyte, the company or person in question that borrowed the money from the bank did not repay the borrowed money, and Gigabyte was held accountable for the loss. What shocked company officials however, was the fact that Chang did not request company permission before setting up the transaction.

Gigabyte is currently investigating Chang's actions and where and why the transaction was setup in the first place. Chang is no longer with Gigabyte.



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RE: Regional Manager???
By masher2 (blog) on 4/28/2007 9:31:27 AM , Rating: 3
> "Honestly, how is having pet projects for your state to support your constituants any different from flat out nepotism?"

There's a huge difference; the two aren't even comparable. A pork project is an example of a politician putting the interests of his constituents ahead of those of the entire nation. Like it or not, that's his job. It's the entire reason we elect officials from geographical regions as opposed to from the nation at large...so they can represent and advance those local interests. Pork projects are only a problem because other politicians allow them to proceed, usually due to vote-trading or other deals.

Corruption, however, is a politician putting his own personal interests ahead of those of his constituents. Its a totally different ballgame...and a far more damaging one.


RE: Regional Manager???
By littlejim68 on 4/28/2007 6:47:21 PM , Rating: 2
Very well said. It is rare that people understand this.


RE: Regional Manager???
By Martin Blank on 4/28/2007 7:02:34 PM , Rating: 2
quote:
A pork project is an example of a politician putting the interests of his constituents ahead of those of the entire nation. Like it or not, that's his job. It's the entire reason we elect officials from geographical regions as opposed to from the nation at large...so they can represent and advance those local interests.

Actually, his job is, as you nearly stated correctly later, to represent the people from the state (in the case of Senators) or local district (in the case of Congresspersons and local legislators) and ensure that their viewpoints or at least what is believed to be in their best interests* are heard and factored into legislation. This does not necessarily mean funneling money locally just to make jobs; that is merely used as a campaigning tool to pick up votes for the next election.

* There are two basic viewpoints on why an elected person is in place, and this is to either represent the viewpoints of the electorate (meaning relying on local input and some polling), or to represent what is believed to be in the best interests of the area (based on what is believed to be a more complete picture of things, even if it is opposed by the electorate). Pork -- passed or not -- is neither of these, but rather simply pandering to the voters.


"We’re Apple. We don’t wear suits. We don’t even own suits." -- Apple CEO Steve Jobs

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